Finance

Salesforce.com 3Q Results Top Estimates, but Guidance Falls Short

Investing.com – Salesforce revenue guidance fell short of estimates after the bell Tuesday. That offset a beat on both the top and bottom lines as acquisitions helped boost growth for its most recent quarter.

The cloud software company guided fiscal 2020 revenue in the range of $16.99 billion to $17 billion. That was below consensus estimates of $16.9 billion, according to Refinitiv.

The company reported earnings per share (EPS) of $0.75 on revenue of $4.51 billion. Analysts polled by Investing.com forecast EPS of $0.66 on revenue of $4.45 billion. That compared to EPS of $0.61 on revenue of $3.39 billion in the same period a year earlier. The company had reported EPS of $0.66 on revenue of $4 billion in the previous quarter.

Revenue was led by growth in Sales Cloud, the company’s biggest product. Sales Cloud generated $1.17 billion in revenue, up 14.5% year on year and Service Cloud, the second-largest division, grew 24% to $1.14 billion.

Revenue was also bolstered by the acquisition of Tableau, which contributed approximately $308 million to the top line. Earlier this year, Salesforce closed the $15.3 billion acquisition of Tableau to gain entry into data visualization tools market.

Salesforce.com (NYSE:CRM) shares lost 1.64% to trade at $159.00 in after-hours trade following the report.

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